Felton, California Short Term Rental Regulations Guide for Airbnb hosts

This guide provides a comprehensive overview of short-term rental regulations specific to Felton, CA, including the application process, required documents, and key regulatory considerations. Please note that regulations are subject to change; always verify the latest information with local authorities.

Overview: Short-Term Rentals in Felton, CA

Short-term rentals (STRs) are allowed in Felton, CA. However, operation is subject to a specific set of regulations administered by Santa Cruz County, as Felton is an unincorporated area within the county. The county's rules are the primary source of STR law for Felton residents.

How to Start a Short-Term Rental Business in Felton

Starting an STR in Felton involves understanding the two distinct rental categories defined by Santa Cruz County and then applying for the appropriate permit.

Determine Your Rental Type:
- Vacation Rental: This is a short-term rental of an entire home. It is designed for properties where the owner does not live on-site during the guest's stay. (While the Surf City Estates article mentions "owner must be present," this is a general summary. The official County ordinance allows for non-hosted vacation rentals. Your primary guide for property-specific restrictions is the County's permit process.)
- Hosted Rental: This is a short-term rental of one or two bedrooms within a home where the owner lives on-site for the majority of the year. The owner must be present during the rental period.
Confirm Zoning Eligibility: Your property must be in a zone that allows residential use. This is a standard requirement for most areas in Felton. You can verify your zoning using the County's GIS Mapping tools or by contacting the Planning Department.
Apply for the Required Permit and Tax Certificate: All STR operators must obtain a permit from the Santa Cruz County Planning Department. The process begins with an application and a review of your property's compliance with local regulations. Concurrently, you must register for a Transient Occupancy Tax (TOT) certificate with the County Tax Collector.

Required Documents, Permits, Licenses, and Guidelines

The following is required to legally operate an STR in Felton under Santa Cruz County law:

For All STR Operators:

Zoning Clearance/Compliance: A verification from the County Planning Department that your property is in an appropriate zone for STR use.
Transient Occupancy Tax (TOT) Certificate: A certificate from the County Tax Collector. You are responsible for collecting an 11% TOT from guests and remitting it to the County.
Property Insurance: While not explicitly mandated by the County in the provided sources, it is highly recommended for protecting your investment.

For Vacation Rental Permit (Entire Home):

Vacation Rental Application: The official application form from the County, which includes details about the property and the owner.
Application Fee: A non-refundable fee, the amount of which is not specified in the provided content. (The Surf City Estates article lists a $200 fee for Felton, but this should be verified with the County as fees can change).
Property Information: Documentation such as floor plans, lot size, and number of bedrooms, which helps the County determine maximum occupancy.
House Rules: A detailed list of rules for guests, which must be posted on-site. These rules must cover a minimum of: rental age, number of guests, number of vehicles, noise limits, food/cooking requirements, pet requirements, prohibited events, trash management, and emergency evacuation instructions.

For Hosted Rental Permit (1-2 Rooms):

Hosted Rental Application: The official application form from the County.
Proof of Primary Residence: Documentation that the owner lives on the property for more than six months of the year.
Application Fee: A non-refundable fee of $149.60, as specified on the County website.

County-Wide Guidelines for All STRs:

Permit Validity: Both Vacation Rental and Hosted Rental permits are valid for five years.
Renewal: Permits must be renewed, and a renewal application must include "Proof of Significant Use," summarizing the dates the unit was used as a rental.
Dwelling Type: STRs are not allowed in accessory structures, accessory dwelling units (ADUs), legally restricted affordable housing, balconies, porches, sheds, tents, or RVs.

Specific Regulations for Short-Term Rentals

Regulations for STRs in Felton, CA, are governed by Santa Cruz County.

Santa Cruz County (Unincorporated Areas, including Felton)

Hosted Rental Cap: There is a County-wide cap of 250 Hosted Rental permits. This can create a waiting list, but as of the latest information from the County website, there is no current waitlist for Hosted Rentals.
Designated Areas: Felton is not within the "Live Oak Designated Area," the "Seacliff/Aptos Designated Area," or the "Davenport/Swanton Designated Area." These areas have additional restrictions on the percentage of parcels allowed to have STR permits and specific waitlists. Since Felton is not in one of these designated areas, the County-wide cap and rules apply.
Occupancy Limits:
- Vacation Rentals: Two overnight guests per bedroom, plus two additional overnight guests. Daytime occupancy can be up to twice the number of overnight guests.
- Hosted Rentals: A maximum of three guests per hosted bedroom.
Tax Rate: As an unincorporated area of Santa Cruz County, Felton STRs are subject to an 11% Transient Occupancy Tax (TOT). This tax is collected from guests and remitted to the County Tax Collector. While Airbnb may collect this tax on your behalf, you must still complete a TOT application form with the Tax Collector.
Review Process: Vacation Rental permits for homes with less than four bedrooms require a Level IV review (public notice). For four or more bedrooms, a Level V review (Zoning Administrator public hearing) is required. Hosted Rental permits can be processed over the counter.

City of Santa Cruz (For Reference, not applicable to Felton)

The City of Santa Cruz has its own STR ordinance, with a separate cap of 250 owner-occupied permits and a prohibition on new non-owner-occupied permits. This is not relevant to Felton as it is an unincorporated area.

Contact Information for the Local Authority

For questions and applications, contact the Santa Cruz County Planning Department, which is the authority responsible for issuing STR permits in Felton.

Physical Address: County of Santa Cruz CDI, Unified Permit Center, 701 Ocean Street, 4th Floor, Santa Cruz, CA 95060
Phone: Zoning Information Line: (831) 454-2130
Email: Planning.ZoningInfo@santacruzcounty.us
Online Application: Applications can be submitted through the County's ePlan Review portal.
Tax Collector (for TOT Certificate):
- Physical Address: 701 Ocean St, Santa Cruz, CA 95060
- Phone: (831) 454-2510
- Email: ttc.webmail@santacruzcountyca.gov
- TOT Information: County TOT Website

Important Links to Source Pages

Santa Cruz County Planning Department - Hosted Rental Permits: https://cdi.santacruzcountyca.gov/UPC/DiscretionaryPermitsZoning/DiscretionaryPermits/HostedRentals.aspx
Santa Cruz County Planning Department - Vacation Rental Permits: https://cdi.santacruzcountyca.gov/UPC/DiscretionaryPermitsZoning/DiscretionaryPermits/VacationRentals.aspx
Santa Cruz County Tax Collector - Transient Occupancy Tax (TOT): http://www.co.santa-cruz.ca.us/Departments/TaxCollector/TransientOccupancyTaxandTourismMarketingDistrict.aspx
Santa Cruz County Code - Chapter 13.10 (Zoning): http://www.codepublishing.com/CA/SantaCruzCounty/#!/SantaCruzCounty13/SantaCruzCounty1310.html
County of Santa Cruz GIS (for zoning and parcel information): https://sccgis.santacruzcountyca.gov/gisweb/

What do Airbnb hosts actually earn in Felton?

Felton hosts earn a median $45,950/year with $238 ADR and 69% occupancy.

Top performers pull in $72,588+ per year.

See the full Felton market breakdown

Next step

Found a property in Felton?

Paste any address and get estimated revenue, cash-on-cash return, and comparable STR performance in under 5 minutes. 3 free analyses per day.

Ask the AI Advisor about Felton

Felton is a small unincorporated community tucked into the San Lorenzo Valley of Santa Cruz County, California, where the Santa Cruz Mountains are draped in coast redwood forest. With a population of roughly 4,000, the town has a quiet, woodsy character shaped by its tree-canopied setting and a short main street of locally owned shops and cafés. Felton is best known as a base for exploring the redwood groves of the surrounding mountains, and it lies about six miles north of Santa Cruz, the nearest major city, just a short drive up Highway 9.

Just minutes from downtown Felton, Henry Cowell Redwoods State Park protects old-growth and second-growth coast redwood forest across thousands of acres. The park's most famous resident is the Fremont Tree, a roughly 285-foot giant that has been a visitor draw since the nineteenth century, and the shaded loop trail through the grove is one of the most accessible redwood walks in the region. Beyond the main redwood grove, the park includes the unique Santa Cruz Sandhills habitat, miles of hiking and horseback riding trails, and a campground beneath the canopy.

Located in the heart of town, Roaring Camp Railroads is a heritage railway that has been carrying passengers into the surrounding forest since the 1960s. Visitors can ride a narrow-gauge steam train through old-growth redwoods, board a vintage passenger train, or take a seasonal excursion that connects to the Santa Cruz Beach Boardwalk. The depot doubles as a small museum of railroad history, and the property hosts special events throughout the year, from holiday train rides to Civil War reenactments.

About ten minutes south of Felton, the city of Santa Cruz offers a completely different coastal experience, from the historic Santa Cruz Beach Boardwalk, one of the oldest amusement parks on the West Coast, to wide sandy beaches, the working municipal wharf, and a lively downtown filled with restaurants and surf shops. The contrast between mountain forest and Pacific shoreline is part of what makes a stay in Felton feel like two vacations in one.

Felton's appeal for short-term rentals lies in this pairing of redwood seclusion with quick access to the coast. Visitors can spend the morning hiking among ancient trees, the afternoon riding a steam train or browsing a small-town main street, and the evening watching the sunset over the Pacific, all without ever leaving the Santa Cruz Mountains. For travelers drawn to Northern California's signature mix of forest, fog, and shoreline, the town offers a calm, central base from which to experience it all.